BOJA vs. SBUX: Which Stock Should Value Investors Buy Now?
We are upbeat about SilverBow Resources, Inc.’s SBOW prospects and see it as a promising pick for now.
The company currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors.
Let’s delve deeper to analyze the factors that make this oil and gas explorer an attractive investment option.
SilverBow has exclusive exposure to the prospective Eagle Ford Shale in South Texas. In the Eagle Ford Shale, the company operates on roughly 99,926 net acres with 335 natural gas and oil producing wells. The company also has 700 gross undrilled locations in the play.
It is to be noted that rising demand for clean energy is leading to higher investments in natural-gas fired power plants, replacing coal units in the United States. The move should support natural gas production in the domestic market.
Per the U.S. Energy Information Administration (EIA), the spot price of natural gas for 2018 will likely be $2.99 per million British thermal units (MMBtu), flat with last year. For 2019, EIA expects price of the commodity to be $3.12 per MMBtu.
Given that the production mix of SilverBow comprises 86% natural gas, the company is well placed to capitalize on the favorable business scenario.
SilverBow has an impressive pricing chart. Over the past year, the stock has rallied 22.2%, outperforming the 11.7% collective gain of the stocks belonging to the industry.
Other Stocks to Consider
Other prospective players in the energy space are TC PipeLines LP TCP, Petroleo Brasileiro S.A. or Petrobras PBR and Denbury Resources Inc. DNR. TC PipeLines and Petrobras sport a Zacks Rank #1, while Denbury carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines has an average positive earnings surprise of 3.7% for the last four quarters.
Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.
Denbury beat the Zacks Consensus Estimate for earnings in each of the prior four quarters, the average positive surprise being 162.9%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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TC PipeLines, LP (TCP) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Denbury Resources Inc. (DNR) : Free Stock Analysis Report
SilverBow Resources Inc. (SBOW) : Free Stock Analysis Report
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